CST Applicable and C Form Issue

[Fortune Procurators]

Dear All,

We (ABC Co.Maharashtra) supply material to XYZ Co.(Mumbai,Maharashtra). Now they have started their Site at Madhya Pradesh and instructed us to supply material directly to M.P.mentioning Ship to M.P. and Bill to Mumbai charging 2% CST. They will issue C Form through Mumbai Office.

Our query is that their site at M.P. not registered under CST Act in M.P.,so can they issue c form through Maharashtra Office under MVAT Registration ?

Is it possible ?

Regards

[Ganeshan Kalyani]

The will certainly will not be able to apply for form C and they are not registered. They will have to get registration first. otherwise full rate of tax can be levied.

AI Summary

C form issuance requires registration in the buyer's state; absent registration, interstate supply attracts full tax.
Form C cannot be issued from the purchaser's Maharashtra MVAT registration for goods shipped to Madhya Pradesh because the purchaser is not registered in the destination state; the purchaser must obtain registration in Madhya Pradesh before issuing Form C or the supplier may levy full tax.